Nr. 1 (2022): Interest rates, resilience and return: a scenario analysis of the profitability of Dutch bank

In this study we examine the profitability of the Dutch banking sector. Against the backdrop of the financial and European debt crises, profits of the Dutch banking sector were under pressure for some time. Between 2015 and 2019 profitability recovered and Dutch banks performed relatively well.
That was due in part to the favourable economy, which meant that banks had to make relatively few provisions for non-performing loans, and to the banks’ success in driving down operating costs over the past decade. The outbreak of the COVID crisis caused a sharp fall in profits in 2020. Although profitability recovered in 2021, interest income, which is by far the main source of income, is under pressure.